The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is the Federal Reserve System (also referred to as the Federal Reserve, or informally, as the "Fed" )
For this assignment, use the information presented in the textbook and the Fed website (http://www.federalreserve.gov/) when addressing the questions below.
1- What are the tools available to the FED for controlling the money supply? Which are used most often? Which are the most effective?
2- How does the money multiplier help to determine the effects of monetary policy?
3- What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices?
The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is the Federal Reserve System (also referred to as the Federal Reserve, or informally, as the "Fed" )
For this assignment, use the information presented in the textbook and the Fed website (http://www.federalreserve.gov/) when addressing the questions below.
1- What are the tools available to the FED for controlling the money supply? Which are used most often? Which are the most effective?
2- How does the money multiplier help to determine the effects of monetary policy?
3- What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices?
